South Korea just lost nearly $48M in seized Bitcoin - and not to hackers cracking code, but to a simple phishing mistake. While $BTC adoption keeps rising, this case shows how fragile custody can still be.
What Actually Happened
During a routine inspection, prosecutors discovered that about 70 billion won ($47.7M) in seized Bitcoin was missing. The funds had been held by the Gwangju District Prosecutors’ Office as part of a criminal case.
How the Theft Happened
Local reports say a password was leaked after an agency worker accessed a fake website. In short: a phishing scam. No complex exploit - just a spoofed page and compromised credentials.
Why This Is Concerning
Governments around the world are holding more crypto than ever, but custody standards are often unclear. When even seized assets aren’t fully protected, the operational risk becomes hard to ignore.
The Bigger Context
Ironically, phishing losses across crypto fell sharply in 2025. Yet this case shows that large, centralized pools of coins remain prime targets - especially when basic security fails.
The Takeaway
Crypto security isn’t just about tech. It’s about processes, training, and custody discipline. Miss one step - and even state-held Bitcoin can disappear.
